Identifier
Created
Classification
Origin
09ASTANA1508
2009-09-10 09:06:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Astana
Cable title:
KAZAKHSTAN: ANTI-MONEY LAUNDERING LAW SIGNED
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UNCLAS SECTION 01 OF 02 ASTANA 001508
SENSITIVE
SIPDIS
STATE FOR INL/AAE, INL/C, SCA/CEN
E.O. 12958: N/A
TAGS: PGOV SNAR KCRM KZ
SUBJECT: KAZAKHSTAN: ANTI-MONEY LAUNDERING LAW SIGNED
ASTANA 00001508 001.2 OF 002
REFTEL: 08 ASTANA 2119
UNCLAS SECTION 01 OF 02 ASTANA 001508
SENSITIVE
SIPDIS
STATE FOR INL/AAE, INL/C, SCA/CEN
E.O. 12958: N/A
TAGS: PGOV SNAR KCRM KZ
SUBJECT: KAZAKHSTAN: ANTI-MONEY LAUNDERING LAW SIGNED
ASTANA 00001508 001.2 OF 002
REFTEL: 08 ASTANA 2119
1. (U) Sensitive but unclassified. Not for public Internet.
2. (U) SUMMARY: On August 28, President Nazarbayev signed the
long-awaited law on anti-money laundering (AML),which will enter
into force in March 2010. The law should increase the effectiveness
of measures aimed at combating money laundering and terrorist
financing by creating the Financial Monitoring Committee,
Kazakhstan's Financial Intelligence Unit (FIU). The law will also
regulate financial monitoring, terrorist financing, and
law-enforcement activities. END SUMMARY.
AML LAW SIGNED
2. (U) On August 28, President Nazarbayev signed the
much-anticipated anti-money laundering law, which will come into
force six months after publication, i.e. in March 2010. The law
describes preventive measures the government will undertake to
combat money laundering and terrorism financing, and establishes the
Financial Monitoring Committee, Kazakhstan's Financial Intelligence
Unit (FIU),which will become operational in March 2010.
NEW FINANCIAL MONITORING REQUIREMENTS
3. (U) According to the law, a wide range of organizations will be
subject to financial monitoring, including but not limited to
banking organizations, pension funds, insurance companies, law
firms, independent legal experts, notary companies, audit firms, and
postal services providers. The law requires these organizations to
develop internal control systems to prevent money laundering and
terrorism financing, and to report suspicious transactions. Banks
are generally well prepared for the new AML law due to existing
internal compliance and due diligence procedures.
A NEW LAW ENFORCEMENT ASSET
4. (U) One of the most significant aspects of the new law is the
establishment of the Financial Monitoring Committee. This new
institution is expected to enhance the ability of law enforcement to
investigate financial crimes and prevent terrorist financing. Once
the law comes into effect in March 2010, all law enforcement
agencies in Kazakhstan will be able to search the new FIU's
extensive database.
A LONG TIME COMING
5. (U) It took more than four years for the lower chamber of
parliament (the Majilis) to approve the draft AML law and send it to
the Senate. During that time, the law was subjected to numerous
revisions, as comments from various lawmakers and external advisors,
including the World Bank, were taken into account. In April 2008, a
Committee for Financial Monitoring was established, and former
Senator Mussiraly Utebayev was named chairman in October 2008
[reftel]. Until that time, very little progress on the draft law
was made. The law was finally approved by the Senate on June 17,
but was signed by the President only after the Constitutional
Council determined that it was in compliance with the Constitution.
FIU PLANS
6. (SBU) On September 4, Utebayev told INL Officer that his
committee must meet an ambitious schedule if the FIU is to be
operational when the law enters into force. In particular, he said
his committee is working to develop an effective information system,
define the scope of financial monitoring activities, adopt bylaws
and regulations to implement the law, and train personnel.
7. (SBU) COMMENT: In the year since Utebayev became chairman of the
Kazakhstani FIU, he has proven himself an effective and far-sighted
ASTANA 00001508 002.2 OF 002
leader, capable of developing an operational, sufficiently-funded
FIU. His authority and personal connections with President
Nazerbayev ensured the final passage of the AML law. He asserts
that his study tour to the United States also played a vital rule in
the adoption of the law and significant progress on the FIU
information system. Implementation will be the next test and will
require continued U.S. engagement. But, establishment of the new
FIU will offer the government a powerful new tool for preventing
crimes whose effects can extend well beyond the borders of
Kazakhstan and providing solid evidence when prosecutions are
appropriate. END COMMENT.
HOAGLAND
SENSITIVE
SIPDIS
STATE FOR INL/AAE, INL/C, SCA/CEN
E.O. 12958: N/A
TAGS: PGOV SNAR KCRM KZ
SUBJECT: KAZAKHSTAN: ANTI-MONEY LAUNDERING LAW SIGNED
ASTANA 00001508 001.2 OF 002
REFTEL: 08 ASTANA 2119
1. (U) Sensitive but unclassified. Not for public Internet.
2. (U) SUMMARY: On August 28, President Nazarbayev signed the
long-awaited law on anti-money laundering (AML),which will enter
into force in March 2010. The law should increase the effectiveness
of measures aimed at combating money laundering and terrorist
financing by creating the Financial Monitoring Committee,
Kazakhstan's Financial Intelligence Unit (FIU). The law will also
regulate financial monitoring, terrorist financing, and
law-enforcement activities. END SUMMARY.
AML LAW SIGNED
2. (U) On August 28, President Nazarbayev signed the
much-anticipated anti-money laundering law, which will come into
force six months after publication, i.e. in March 2010. The law
describes preventive measures the government will undertake to
combat money laundering and terrorism financing, and establishes the
Financial Monitoring Committee, Kazakhstan's Financial Intelligence
Unit (FIU),which will become operational in March 2010.
NEW FINANCIAL MONITORING REQUIREMENTS
3. (U) According to the law, a wide range of organizations will be
subject to financial monitoring, including but not limited to
banking organizations, pension funds, insurance companies, law
firms, independent legal experts, notary companies, audit firms, and
postal services providers. The law requires these organizations to
develop internal control systems to prevent money laundering and
terrorism financing, and to report suspicious transactions. Banks
are generally well prepared for the new AML law due to existing
internal compliance and due diligence procedures.
A NEW LAW ENFORCEMENT ASSET
4. (U) One of the most significant aspects of the new law is the
establishment of the Financial Monitoring Committee. This new
institution is expected to enhance the ability of law enforcement to
investigate financial crimes and prevent terrorist financing. Once
the law comes into effect in March 2010, all law enforcement
agencies in Kazakhstan will be able to search the new FIU's
extensive database.
A LONG TIME COMING
5. (U) It took more than four years for the lower chamber of
parliament (the Majilis) to approve the draft AML law and send it to
the Senate. During that time, the law was subjected to numerous
revisions, as comments from various lawmakers and external advisors,
including the World Bank, were taken into account. In April 2008, a
Committee for Financial Monitoring was established, and former
Senator Mussiraly Utebayev was named chairman in October 2008
[reftel]. Until that time, very little progress on the draft law
was made. The law was finally approved by the Senate on June 17,
but was signed by the President only after the Constitutional
Council determined that it was in compliance with the Constitution.
FIU PLANS
6. (SBU) On September 4, Utebayev told INL Officer that his
committee must meet an ambitious schedule if the FIU is to be
operational when the law enters into force. In particular, he said
his committee is working to develop an effective information system,
define the scope of financial monitoring activities, adopt bylaws
and regulations to implement the law, and train personnel.
7. (SBU) COMMENT: In the year since Utebayev became chairman of the
Kazakhstani FIU, he has proven himself an effective and far-sighted
ASTANA 00001508 002.2 OF 002
leader, capable of developing an operational, sufficiently-funded
FIU. His authority and personal connections with President
Nazerbayev ensured the final passage of the AML law. He asserts
that his study tour to the United States also played a vital rule in
the adoption of the law and significant progress on the FIU
information system. Implementation will be the next test and will
require continued U.S. engagement. But, establishment of the new
FIU will offer the government a powerful new tool for preventing
crimes whose effects can extend well beyond the borders of
Kazakhstan and providing solid evidence when prosecutions are
appropriate. END COMMENT.
HOAGLAND